The current volatility of the world’s markets, spawned by the COVID – 19 crisis, has been something of a call to arms for the Commission and its counterparts around the world. The Commission, for example, stepped-up early with targeted relief designed to aid those who may experience regulatory difficulties because of the crisis. In the wake of those steps the New York Stock Exchange transformed if only for now into an electronic medium from its…

The COVID – 19 virus continued to rip across the U.S. this week, essentially closing New York, Illinois and California. A primary election in Ohio was postponed. The Commission issued two orders over the weekend. One deals with transfer agents; the other trading on the NYSE. These follow the orders issued last week (here). In addition, FinCEN issued a warning. Regulators around the globe also issued statements regarding the pandemic and/or the volatility…

From the earliest days of the Commission, the remedies available to the agency were a question. Initially, those remedies were only an injunction. There was no disgorgement; no penalties; no officer and director bars; no penny stock bars. Over the decades since the securities laws were written the available remedies dramatically changed with a little help from the creative talents of the Commission and Congress. Now the agency has an array of remedies available, starting…

Last week a jury in the Central District of California found in favor of the Commission in a case centered on sham transactions used by corporate insiders to essentially misappropriate unregistered shares of the company. The shares were then sold into the market through others who funneled the cash back to the insiders. This week a jury in the District of Connecticut found in favor of the Commission in a case were an investment adviser…

Last week a jury in the Central District of California found in favor of the Commission in a case that varied significantly from the all too familiar offering fraud actions the agency has focused on recently. In that case the fraudsters did not sell the shares to the unsuspecting public with tales of riches never to be realized. To the contrary, the Commission alleged that the fraudsters actually misappropriate the shares of stock from a…

Uncertainty. That is the word of the week, and unfortunately for the foreseeable future. A virus circling the globe has shuttered the Supreme Court to the public; Broadway theaters in New York; the Smithsonian Museums in Washington; and a dizzying array of public events. Markets, all of which detest uncertainty, are acting predictably – gyrating up, down, sideways and setting off circuit breakers. The Commission implemented targeted relief for certain issuers to try and stem…

The Commission’s retail investor focus has spawned a long series of offering fraud actions. The common element to most of these cases is a series of assurances given to the investors that their funds are secure, available and will eventually pay them a reasonable return. While the cases arise across the country Florida, as favorite retirement haven, is a good venue for promoters. That was the case with the Commission’s latest action in which almost…